Pricing power in the core goods sector improved notably last month
with a 0.2% gain (-0.7% y/y), only the third increase in about twelve months.
The y/y change remained weak, however, at -0.7%. Medical care product prices
surged 1.0% (2.3% y/y) and equaled the strong July rise. Appliance prices
increased 0.5% last month (-1.0% y/y) and the y/y decline of 1.0% compared to
-5.2% in 2014. New vehicle prices jumped 0.6% (-0.5% y/y) and used car prices
surged 1.4% (-1.0% y/y). The cost of furniture improved 0.1% (-1.7% y/y) after
ten months of decline. Prices of recreation goods remained under pressure
posting a 0.4% drop (-3.4% y/y). Apparel prices were off 0.5% and the y/y
decline of 1.6% was the weakest reading since 2015.

Service prices remained firm as they posted a 0.3% gain (2.6%
y/y). Shelter prices rose 0.4% (3.2% y/y) as the cost of lodging away from home
surged 0.8% (0.6% y/y). Owners' equivalent rents of primary residence gained
0.3% and a steady 3.2% y/y. Transportation services prices rose an improved 0.3%
m/m, but the y/y change remained stable. Medical care services prices rose an
improved 0.2%, but the y/y increase of 1.6% compared to 5.1% y/y in August of
2016. Public transportation costs held steady (-1.6% y/y). Recreation services
prices rose an improved 0.3%, lifting 2017's rise to 3.8%, up from 2.9% y/y in
2016. Education costs rose 0.2%, with the 2.2% y/y rise the most moderate since
the 2004 peak of 7.1%.